PayDay Loan Query

[dazza72]

Hi folks,

I'm about to default on four payday loans,

same old story as most folks who fall into the payday loan trap.

 

A few questions:

 

1. Im going to deal with each of them via email, not phone. Is email enough or should I write to each company?

 

2. I've opened a new current account with a new bank. My old bank I have reported my debit card stolen and requested all CPAs be stopped immediately.

Once the companies agree a payment plan, how should I best pay them monthly?

Would it be ok to setup a standing order to each company on my new bank account

or would they still be able to access my account that way, even though it's a new current account with a new bank?

Surely if I put money in my old account to pay them all each month,

one of them will just take all the cash that's been put into that account?

 

3. In total I owe around £2,500,

I dont want to leave me and my family struggling each month so over what amount of months could I realistically get away with asking to pay the debts off over?

 

Thanks for any input.

[ims21]

Thread moved to PDL forum

[Welshy27]

Tell us the names of the four PDL companies you have loans with which will give us a better idea of how they are to deal with.

[renegadeimp]

Spend some time and fill in and income and outgoings form. Make sure to cover every expense. Then work out how much you can spare for each creditor. even if its £1 a month. create a budget summary and send this with your email or letter to the pdl.

 

If they ask for an I&e form, ignore them. The only thing they are entitled to is the budget summary and definitly not bank statements, utiliy bills, or an i&e form.

[dazza72]

Tell us the names of the four PDL companies you have loans with which will give us a better idea of how they are to deal with.

 

1. Wonga - £858. Mr Lender - £585. Purple Payday - £774. PayDayUk - £303.75

[dazza72]

Spend some time and fill in and income and outgoings form. Make sure to cover every expense. Then work out how much you can spare for each creditor. even if its £1 a month. create a budget summary and send this with your email or letter to the pdl.

 

If they ask for an I&e form, ignore them. The only thing they are entitled to is the budget summary and definitly not bank statements, utiliy bills, or an i&e form.

 

Can anyone provide me with a basic incoming and outgoing form?

[Welshy27]

You shouldn't have any problems setting up a repayment plan with Wonga - not sure about the other three and how helpful they are.

[renegadeimp]

http://www.nationaldebtline.co.uk/england_wales/pdf/personal-budget-sheet/your-personal-budget-sheet.pdf for an I&E form. DO NOT give this form to a PDL/DCA. It is for YOUR use only.

 

Once you have worked everything out, use http://www.nationaldebtline.co.uk/england_wales/pdf/personal-budget-sheet/budget-summary-for-creditors.pdf for a short summary to give to a creditor. They are entitled to nothing more, no matter how much they protest.

 

Remember, if they ask for wage slips/bank statements/utility bills, tell them to get lost. They ONLY thing they need is the budget sheet. Only a court can ask for anything else.

[ihateyes]

wonga - send email to [email protected] or [email protected]

 

Mr Lender - had no dealings.

 

PDUK - needs to default by 1 day.... normally only happy for 3mths, may pass to Keyes Whitlock.... who are infact PDUK in disguise.

 

Purple Payday - arent they a matching website?

 

 

Ask in your emails for bank details to make payments..... under NO circumstances give details or apply for other PDL's as some companies will share your details.

[dazza72]

Here's my initial email to Mr Lender, PayDayUK and 1stStop. Wonga is not due for payment until next Wednesday, at that point I will send the same letter. I have spoken to both Mr Lender and PayDayUK who phoned me first thing this morning.

 

Let me know what you guys think of the email I have sent:

 

Dear Sir / Madam,

 

In regards to my failure to honour the repayment to your Company, due to unforeseen personal financial circumstances, I'm having to default on all payments to my creditors. I take this step with deep regret, however, it is not a step I have taken lightly.

 

I will not have any funds in my bank account for you to collect your payment to cover my loan. Please can you therefore with immediate effect, not attempt to take any payment from my bank account, either by direct debit, CPA or using my Visa Debit card details supplied as this will mean I will incur further charges from my bank and have even less money to enable repayment of my debts.

 

I would now at this point like to arrange a repayment plan with you and freeze any further interest and charges going forward so I am able to pay off my debt with you as quickly as possible, contacting me by personal email only. Please do not call me using my works phone number as this would be in breach of the Protection from Harassment Act 1997.

 

It is with great regret that I am having to ask for a repayment plan, but due to these unforeseen circumstances which have now effected my ability to repay the loan to you in one lump sum, I have no other alternatives available. I will have to contact all of the other companies who I pay by Direct Debits to in order to arrange repayment options with them.

 

For my protection, and from a legal point of view, I would like to inform you of the following:

 

You can contact me ideally by email. Should you require to speak to me, please contact me via my personal mobile phone number. Under no circumstances should you contact me by my works phone number.

 

Please can you confirm that your company agrees to my preferred methods of contact and will not contact me on my works phone number. As I stated above, I would construe this as harassment and in contravention of the Protection from Harassment Act 1997.

 

I have no doubt that your company fully understands my situation and will adhere to the Protection from Harassment Act 1997 whilst I am arranging repayment of the loan with yourselves, and throughout the duration of any repayment period. I am fully aware of the OFT Debt Collection Guidance and I will consider making a complaint about a company's behaviour under the guidance if it becomes apparent that you do not follow the legal guidelines and would have no other alternative than to seek legal advice. In particular section (2.2 g) 'Ignoring or disregarding debtors' legitimate wishes in respect of when and where to contact them, for example, shift workers who ask not to be telephoned during certain times of the day'.

 

I do hope however, that we can arrange a repayment plan to alleviate the stress of my whole situation, and to also enable the repayment of the loan to your company as promptly as my finances will allow.

 

I will be looking at my budget and will provide each of my creditors a repayment figure that I can afford to undertake.

 

Please understand I fully understand my commitment to paying off my debts with your company and have every intention in doing so.

 

I shall be in contact with a repayment plan to yourselves within the next few days.

 

In order to keep a record of conversations, I have copied myself in onto this email.

 

Yours sincerely

[ihateyes]

contact wonga immediately.... they will freeze interest immediately.

[renegadeimp]

Emails a bit long winded but contains the necesary info.i say long winded because a lot of pdls disregard communication if its not sjort and to the point. Then they try and say you never contacted them.

[dazza72]

Emails a bit long winded but contains the necesary info.i say long winded because a lot of pdls disregard communication if its not sjort and to the point. Then they try and say you never contacted them.

 

Just took a phone call from a guy at 1stStop, who seem to be PayDayUK! Firstly he tried work therefore reiterated what email had stated in regards to contravening the protection from harassment act 1997!!

 

This guy was really pushy, asking why my circumstances had changed so quickly, basically accusing me of taking the loan out knowing fully well I couldn't repay it. I'm sure a lot of people, especially the vunerable, would have been quite scared at his manner and threatening tone ... I basically told him I was terminating this call and all correspondence would now be via email. At the end of the day, he's just a pen pusher there. He also stated they wouldn't accept any payment plan, unless I went through them to do it!!! That made me giggle.

 

I'm guessing I will see PayDayUK, or 1st Stop, whoever they are called! in court which I'm quite happy to see through. You can't get blood out of a stone!!

[dazza72]

This is an email I've just received from Mr Lender. Do I need to pay that amount initially?? I'm guessing they are saying if I pay the £135 then I only have to pay another £135 over either 6 or 10 months, meaning I pay £270 as opposed to the full £585? A saving of £315?

 

 

Thank you for your email.

 

Unfortunately, we cannot setup a repayment plan until we receive a token payment of £135.00.

 

Once this payment has been received, I can then freeze all interest on your account and you can pay your balance off on a monthly basis that is more affordable for you.

 

This is usually done in 6 or10 months.

 

These payment would be £22.50 over 6 months OR £13.50 over 10 months.

 

If you can please remain in contact with me at least once a week with an update on your account this will help you reduce the amount of calls you will receive, unfortunately calls may not be completely stopped.

 

In regards to your card being debited, the system is automated and will try to debit all outstanding accounts there is nothing I can do about this. Fortunately if payments do decline your bank are not going to charge you for this.

 

I hope I have helped with your situation and look forward to hearing from you soon.

[Welshy27]

Is that £585 a reflection of your original loan and interest or have additional charges been added to give £585? A token payment of £135 is a lot and any payments should be on your terms.

[dazza72]

Is that £585 a reflection of your original loan and interest or have additional charges been added to give £585? A token payment of £135 is a lot and any payments should be on your terms.

 

That's the original loan and interest.

[Welshy27]

That's the original loan and interest.

 

In that case it seems very odd that they are willing to offer at this stage any such reduction on what you are due to pay. I've not read about this happening before and would be wary. Can you afford to pay £135?

[dazza72]

In that case it seems very odd that they are willing to offer at this stage any such reduction on what you are due to pay. I've not read about this happening before and would be wary. Can you afford to pay £135?

 

I totally agree, very wary!! however, this is in written form via email .. surely they cannot go back on it?

 

If I can raise the £135 I will do as this will save me over £300 on this one PDL.

[Welshy27]

I would reply to that email to ask for clarification that you have understood what they are offering in relation to how your balance would stand. For example:

 

"As I understand if I were to pay £135 the balance would become £450. I would then make six payments across six months of £22.50 to total £135 which would further bring the balance down to £315. The account would then be closed at this amount having completed the repayment plan."

 

This is too good to be true?! See what they say to such an inquiry.

[dazza72]

I would reply to that email to ask for clarification that you have understood what they are offering in relation to how your balance would stand. For example:

 

"As I understand if I were to pay £135 the balance would become £450. I would then make six payments across six months of £22.50 to total £135 which would further bring the balance down to £315. The account would then be closed at this amount having completed the repayment plan."

 

This is too good to be true?! See what they say to such an inquiry.

 

 

Have just replied with following email, much to as you mentioned:-

 

Many thanks to your swift response to my initial email.

 

Can I just clarify the statement you made in your email. Were I to make a single payment of £135, all interest would be frozen. The balance would then stand at £450. I would make a further 6 monthly payments of £22-50 which totals £135, thus bringing the balance down to £315.

 

Are you stating, at this point of the loan standing at £315, that the account would be closed and no further payments would be required being as all interest/charges had been stopped or written off?

 

Thank you for clarification in this matter.

 

Regards,

[Welshy27]

Great stuff. I will be very interested to hear if they agree to this.

[dazza72]

Great stuff. I will be very interested to hear if they agree to this.

 

As soon as I get a reply I will post here. I must say, compared to PayDayUK, Mr lender are a dream to deal with .... but I'm not counting my chickens just yet!!!

[dazza72]

I'm wondering if, legally, writing on an email is just as 'bound by law' as writing in a physical letter?

[dazza72]

Great stuff. I will be very interested to hear if they agree to this.

 

Bugger!!

 

Thank you for your reply.

 

Unfortunately, the figures I had on my screen weren’t up to date on your account.

 

Your balance after paying the initial £135.00 token payment would be £450.00 this would then be split over 6 or 10 months.

 

6 months = £75.00 per month

 

10 months = £45.00 per month

 

Sorry for the confusion.

[Welshy27]

Good job we clariffied - I would have been had they not made you pay the remaining £300.

 

At least they are prompt in replying and will freeze all interest/charges. Any idea what you might do now? I still think the token payment is rather steep since it is meant to be on your terms and if it were me I'd offer no more than £50. If you are able to afford it, I'd be inclined to take up their offer because at least you will have made a start at repaying it back.